Post a one month long Ramadan holiday, Middle Eastern producers have started to offer their new September PP and PE prices to Egypt, as per ChemOrbis. New offers indicate stable to softer levels for PE when compared to August, while the PP market saw regional producers follow mostly a stable to firmer pricing policy. These pricing strategies are in line with prices in China, although they do not see much support from demand.
In the PP market, Middle Eastern producers revealed stable to US$10-20/ton increases for September apart from a major regional producer’s PP raffia price, which indicated a US$20/ton decrease at the low end of the range and remained stable at the high end when compared with August prices. A producer issuing a US$20/ton increase on their PP raffia and injection offers is not widely offering PP quotas to the market as deliveries will be later than usual shipment time for September. Buyers preferred to adopt a cautious attitude towards fresh PP purchases as they mainly await price announcements by the local PP producer OPC. Following that, the domestic producer rolled over raffia prices on the last working day of last week. In the PE market, regional producer’s new offers indicate rollovers to US$20-30/ton decreases. Despite these decreases, players were mostly mute to the new import prices during last week although the import HDPE film offers are competitive, especially at the low end, when compared to the local producer SIDPEC’s HDPE prices, who rolled over their September offers. Import Middle Eastern prices are traded at a discount of US$36-105/ton when compared to the local producer, who forms the low end of the overall distribution market, after adding US$30/ton clearing and handling charges to localize the import prices. To sum up, overall import PP and PE offers are expected to preserve their current levels with some discounts possible given the globally slow demand.